What are the economics of making $1,000,000 per year?

Last Update: October 02, 2019

I get people coming to me all the time, and you may to, saying I want to be rich. That is great that people are ambitious and they have goals of being "rich" or a "millionaire", but to understand how to get there and to create a path to accomplish this, you firs need to understand the mathematics of a million dollars.

First Step, Breaking Down a Million Dollars

In terms of financial goals, I have always liked to break things down into a daily revenue. Unlike conventional salaried or contract income, the internet is a 24/7/365 operation. Because of this you can break down your income goals and projections into daily, but this is up to you. You could operate on a weekly or monthly scale manner, this is up to you.

$1,000,000 broken down, looks like this.

Daily: $1,000,000 / 365 = $2,739.73 per day
Weekly
: $1,000,000 / 52 = $19,230.77 per week
Monthly:
$1,000,000 / 12 = $83,333.33 per month

OK, so now you know how much it takes to earn on a daily, weekly and monthly basis if you were to generate a million per year. If you have never done the calculations, this may be interesting new insights into the mathematics of a million bucks.

Step 2, Break Down into Sales Terms

But I want to take this a step further here. In respect to the Affiliate Marketing, you want to break down your idealistic income in terms that make further sense to your business. In the affiliate marketing world, this would be commissions.

Let's say you are promoting a golf product (a self-improvement guide) that pays an average commission for a product or service you are promoting is a $30 commission. This would be a very common commission in this space, with some products paying lower, and some much higher.

If you then take this amount, and divide your income numbers by it, you will quickly find out how many daily, weekly and monthly sales you need in order to generate a million dollars per year.

Daily: $1,000,000 / 365 = $2,739.73 per day / $30 = 91 sales per day
Weekly: $1,000,000 / 52
= $19,230.77 per week / $30 = 641 sales per week
Monthly: $1,000,000 / 12
= $83,333.33 per month / $30 = 33,333 sales per year

Let's look at the average sale for the affiliate program here at Wealthy Affiliate. The average sale is currently $124 (when recurring is taken into consideration). Let's run some numbers on this.

Daily: $1,000,000 / 365 = $2,739.73 per day / $124 = 22 sales per day
Weekly: $1,000,000 / 52
= $19,230.77 per week / $124 = 155 sales per week
Monthly: $1,000,000 / 12
= $83,333.33 per month / $124 = 8,042 sales per year

Obviously it depends on the affiliate, and the help you offer your referrals when you join, but that is the clear path as to what it would take to earn $1,000,000 per year through affiliate marketing. And the reality is that when you are an affiliate for several years, you start to get lots of yearly recurring commissions, you have people that stick around for years and the commission turn out to be worth $1,000's to you.

Do you think you could find 22 people in the world per day that are interested in building a business online, for a $1,000,000 recurring income? Those are the economics and those are the mathematical formulas you need to understand.

You can obviously do this with any figure. If you want to make $10,000 in a year, you can use this same math to break that down into a daily income. If your goal is $100,000 in a year, then use that. And et cetera.

A breakdown of $100,000 income per year would look like this.

Daily: $100,000 / 365 = $273.97 per day
Weekly
: $100,000 / 52 = $1,923.08 per week
Monthly:
$100,000 / 12 = $8,333.33 per month

And then you could tie in the formula to achieve that promoting an affiliate program like Wealthy Affiliate.

Daily: $100,000 / 365 = $273.97 per day / $124 = 2.2 sales per day
Weekly: $100,000 / 52 = $1,923.08 per week / $124 = 15 sales per week
Monthly: $100,000 / 12 = $8,333.33 per month / $124 = 804 sales per year

So to earn $100,000 per year through an affiliate program like Wealthy Affiliate, you would need to earn 2.2 sales per day on average.


It is always nice to get a reality check on the numbers, and what you need to accomplish to reach any financial goal that you set out to achieve. The next natural step after you set these out, is building a plan to achieving this. This is going to come down to your website, creating content, getting traffic, and working on conversions. Those are the fundamentals that you are learning here at Wealthy Affiliate and with time, your business will pay dividends.

There you go. That's the math behind a million dollar per year income, and the way you can arrive on the sales numbers required to achieve this. If you can understand this and then build a fundamental plan as to how you are going to get there, you have a bright future ahead of you.

How and when you achieve any financial goals, is only decided by the actions that you take in your business, and with what frequency and duration you take action. :)

Now it's your turn. I want you to take a minute and answer a few questions in the comments below.

Question #1: If you were an affiliate of a product like Wealthy Affiliate that pays $124 on average commissions, and you needed to make 2.2 sales per day ($100,000 per year), what would be your plan of action to accomplish this?

Question #2: If you were an affiliate of a product like Wealthy Affiliate that pays $124 on average commissions, and you needed to make 22 sales per day ($1,000,000 per yer), what would be your plan of action to accomplish this?

I look forward to hearing your feedback!

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Cav1966 Premium
LOL Looks a lot better on paper. I am averaging about 3 affiliate sales per month right now. So if my numbers are correct (cough cough) I will be partying by the time I am in the ground. :)
Hopefully not,the plan is to scale from here so far at least it has been consistent for the past two months at least.
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drewdavis08 Premium
how many pages do you operate?
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Cav1966 Premium
The commissions have been from 2 different websites...i run 3 right now in different niches.
My mmo site right now as 68 posts and 5 pages..that is my largest site right now
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drewdavis08 Premium
how difficult would it be for you to scale that up to 25-30 pages?
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Cav1966 Premium
Right now pretty difficult for me personally ...only so many hours in the day and i still work a full time job.
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drewdavis08 Premium
gotcha.
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Jadatherapy Premium
OKAY....

Thanks for the breakdown Kyle much appreciated.

Right! my plan is to create a lot of content for my MMO site - 250 posts by the end of this year.

Build my email list which is growing nicely.

Socialise on social media

Tap into a couple of forums and help

My Referrals plan is to make sure that I take real good care of them and help them as much as they need.

Follow the Super Affiliate Training to the end.
Follow Jay's live training every week
These are my goals that I have been following from the beginning of the Super Affiliate Challenge.

Here's to making it happen

Jennifer
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PaulaSchmitz Premium
When did the Super Affiliate Challenge happen? I guess I missed that, Kyle! :)
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Jadatherapy Premium
Hi Paula

The Super Affiliate Challenge is in the 5th Month now.

Hope this helps

Have a great week

Jennifer
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bexfiliate Premium
Insightful.

I appreciate the clear delineation and breakdown.

It takes a large end goal and breaks it down into manageable and foreseeable results and steps. Grateful to be able to adopt this mental frame.

In regards to your questions above, I would intend on the end goal and then take actionable steps towards it.

It is wonderful your community as it allows for a clear breakdown of achievable goals through your step by step approach and the all around solid guidance.

I have learned too, that one's success is generated with an open and positive mindset coupled with a willingness to invest time wisely in the pursuit of executing their new knowledge.

That's key - well, for me, anyway :-)

Thanks for the uplifting post dude!

Cheers!

-Bex
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Twister19 Premium
That's a great post and really puts it all into perspective. I feel many people would feel disheartened starting out that they will never break 100,000 in a year. But then running the numbers to find out it could be as low as 2 sales a day makes it feel more achievable.

Thanks for the post!
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Kyle Premium
Yeah, that is absolutely the case. The numbers can feel much larger until you put them into perspective.

Most people are of the "5 days per week" mindset, the internet never sleeps and when you get your campaigns going they can produce 24 hours per day, 7 days per week.
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Fredeim88 Premium
To make 22 sale per day, you first need to to make 2, 2 sales. To reach your goal on 2,2 sales you need to get your 1 sale. To make your first sale, you need a niche, a web site and a product to promote. Then you use the tools you have in the toolbox here at WA. Making content, get traffic and make the conversion. That's the tricky part of it. It's hard work. But you need to build up from the first sale.

Still working to make my 1 sale on my road to my million.
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Kyle Premium
Yeah, 2 sales per month is the first goal of course. But like any business, you work in scale. You first need to get a foundation down, get your formula for success down, then you scale and build.

You can amplify your success with the most efficiency as you dive into the PAID traffic world, but that comes with risks and I that is the solution to go from 2 or 4 or 6 sales...to something much more significant.
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Fredeim88 Premium
That's way I have focus on to get my first sale. You can't build a house if you start with the roof first. I got the question before of how to make money, and somehow people have a tendency to forgetting about the foundation first.
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